"A shot in the dark here, but does anyone know of a good contact number for TD Ameritrade to get statements? We have a takeover plan with 30+ individual accounts that is being (has been) converted to a platform. We managed, with great difficulty, getting about 20 of the accounts transferred over, and we have access to the TDA website for account activity. Somewhat unbelievably, at least to my way of thinking, anyone who was paid out immediately drops off of their website, so we have no activity information on those accounts. (All we are trying to do is get statements; the money is gone.) Unfortunately, this part of TDA's business was sold to Schwab, and they are pointing fingers at one another as to who has this info. The TDA area I've been talking to is really for transferring money in or out, but the client services number they give me is for Schwab, and they insist that they don't have info on accounts that weren't transferred, which I believe. The broker is of no help at all; not only do they have the same problem with the accounts disappearing, but we took 'their' money so they are refusing further assistance (and in general are worse than useless anyway but that is a given). So....any ideas for getting info on TDA 'legacy' accounts?"

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"The regulations clearly permit an acceleration of vesting (Treas. Reg. 1.409A-2(j)(1)). For example, if an amount of deferred compensation vests after ten years and is payable upon a separation from service, it is not a violation for the service recipient to reduce the vesting requirement to five years, even if a service provider receives a payment in connection with a separation from service before the initial ten year period. What if the payment provision provided that a service provider would receive a payment of deferred compensation upon a separation from service that occurs after the participant reaches age sixty? Would an amendment to the Plan that provides a payment upon a separation from service at age 55 be compliant under the above reference provision (i.e. changing a condition constituting a substantial risk of forfeiture), or would it be considered an acceleration of a payment?"

"We are correcting a missed opportunity to defer for 2023. We owe the employee a QNEC based on 50% of the ADP for the employee's group (NHCE) multiplied by the employee's compensation. The problem is, we don't know the ADP for 2023 yet. We'd like to correct immediately. Is there another way to determine the missed deferral opportunity, or do we just wait until the Plan Year closes out to correct? I know it's nearly the end of the year, but there has to be some alternative (e.g. a situation where we are trying to correct mid-year, rather than in December) other than waiting until the Plan Year's ADP is known -- right?"

"We administer a 401(k) plan that has an in-service distribution provision. The age is 59 1/2 for salary deferrals and safe harbor contributions and 59 1/2 for profit sharing. We sent the client an amendment to eliminate the age on the profit sharing source about two months ago. The amendment indicated that the change would be effective November 15, 2023. Even though we told them to execute before November 1, 2023, they executed today. The plan has a participant who is requesting an in-service distribution. There is no reduction of benefits here nor is there any cut-back. Does it really matter that this became a retroactive amendment because they waited so long to execute? Since no other participant has ever taken an in-service distribution I would think that even though the amendment has an effective date of 11/15/2023 it really has an effective date of December 6, 2023 because it was signed today. Anyone disagree?"

"When a plan sponsor asks for your advice about whether to provide or omit an eligible distribution to a domestic abuse victim, what do you recommend or suggest?"

"We are coming across issues where the vested balance is more than the actual balance for certain rehires. Im waiting on the details, but in a nutshell:

• Participant terminates in 2021 at 20% vested and takes a partial distribution.
• Participant is rehired in 2022 and is 60% vested at 12/31/23.
• Relius says that the vested balance is more than the actual balance in the account.

Any ideas?"

"For plans that have 401k entry on the first of month after meeting eligibliity, which payroll do they start it with when twice monthly payroll at the end of the prior month is on, say the 5th? that payroll which is paid after date of eligibliity or the next one which includes the date of eligibility for which payroll is run?"

"In my many years of practice, I have never ran across this question: Can a plan have an 'inservice rollover' provision for any reason? No age restrictions or years of service provision. I have never seen this in a pre-approved plan document. Several internet providers are saying this is possible and we know how reliable the internet is. Could it be done with an IDP?"

"Division A has match going in every pay-period because these are basically salaried office workers. The vast majority of the HCEs are in division A. There are a bunch of employees with more sporadic work schedules and the client does not want to provide them with the match unless they work 1,000 hours and meet the last day requirement. [1] Straight coverage, my ratio%age fails but a hair, but my Average Benefits Test passes by a mile, [2] If I treat the timing as a BRF then I am still good because even if I treat the pay-period match as a BRF I'm over the nondiscriminatory classification threshhold. Am I thinking this through correctly?"

"I have seen this statement, or similar wording, in several places, and I think I must be misunderstanding something. If the pre-approved plan language for eligibility allows for, say, '3 consecutive months of service from the Eligible Employee's employment commencement date and during which at least 250 hours of service (not to exceed 1,000) Hours of Service are completed. If an Eligible Employee does not complete the stated Hours of Service during the specified time period, the Employee is subject to the 1 Year of Service requirement....' So, if an employee works less than 250 hours in that first three month period, they become subject to the 1 year of service requirement. Suppose they work 600 hours during the next 3 (or [2] consecutive plan years. Why would they not be considered LTPT?

"The LTPT rules will only affect 401(k) plans whose eligibility requirements require employees to complete at least 500 hours of service in a 12-month period to participate. 401(k) plans that require fewer hours -- or none at all -- will never produce a LTPT employee, making the new rules moot."

"A summary plan description I’m reviewing includes this paragraph: If your distribution is an eligible rollover distribution and exceeds $200, you may instruct a direct rollover of all or a portion of your distribution to an eligible retirement plan. But you may instruct a direct rollover of a portion less than all of your account only if each portion is at least $500 (with this minimum counted separately for each portion of Roth or non-Roth amounts). Are those amounts still current?"

"I have never been a part of a Roth Conversion. Have a single member plan who has asked if she can do one. The plan document allows for one and I have done some reading. Have I got the process correct? Is there a script/outline somewhere that someone can point me to?

• In-plan Roth rollovers/conversions have evolved into being the same. In the beginning you needed to be eligible for a distribution and now anyone can convert as long as the account is 100% vested. Right so far?
• A 1099-R will need to be prepared for the conversion. No actual taxes are withheld yet the participant will need to declare the rollover as income on their personal 1040. No 10% penalty, no 20% Fed withholding.
• The 1099-R distribution code will be G for rollover (Box 7). Box 1 and 2a will both be the total amount converted. None of the money has been taxed so it all needs to be declared and is taxable.
• The rollover needs to be put into a designated Roth account.
• The 5 Year Rule....
  • The 5 year rule starts at the beginning of the first tax year.
  • Each conversion has it's own 5 year rule.
  • If a distribution is taken before the 5 years is up and the account holder is less than 59-1/2 then the 10% penalty kicks in and the whole distribution is taxable
  • If a distribution is taken before the 5 years is up and the account holder is older than 59-1/2 then the 10% penalty does not kick in but the whole distribution is taxable

Do I have it right so far? One question I can't find the answer to or am just missing it is 'if the plan closes before the 5 years is up and the ROTH account is rolled over to a ROTH IRA, no penalty? All good? but there is still the remainder of the 5 years to go before distributions can be taken tax free?' "